As I write this post, 9:30 am, I’m quoting:
Rate based on 30 year fixed conventional with a loan amount of $400,000 and a sales price of $500,000, Purchase in greater Seattle with 80% loan to value and home buyers with credit scores of 740 or higher closing on January 10, 2014.
MBS are currently down following a week treasury auction.
Mortgage rates change constantly and may have changed by the time I publish or you are reading this post. If you would like me to provide you with a rate quote based on your personal criteria on a home located anywhere in Washington state, please click here.
We should be hearing from Ben Bernanke, at his last Fed Meeting, at around 11:00 Seattle time. My plan (based on what the day brings) is to update this post with rates throughout the day. You can check back here or follow me on Twitter or Facebook, where’ll I’ll be sharing updates.
10:08 am: DOW at 15,887.
11:05 am. Fed announces they are going to pull back on quantitative easing. DOW is up 76 points at 15,968. MBS down a bit more. Actually, DOW is up triple digits on the news of the taper as this reflects an improving economy.
11:08 am: I’m trying to update my rates but a majority of the lenders we work with are not available for pricing quite yet… stay tuned.
From today’s FOMC press release:
…In light of the cumulative progress toward maximum employment and the improvement in the outlook for labor market conditions, the Committee decided to modestly reduce the pace of its asset purchases. Beginning in January, the Committee will add to its holdings of agency mortgage-backed securities at a pace of $35 billion per month rather than $40 billion per month, and will add to its holdings of longer-term Treasury securities at a pace of $40 billion per month rather than $45 billion per month….
Ben Bernanke will be holding a press conference soon.
11:30 am: Ben Bernanke’s press conference begins.
11:36 am: DOW at 16,057
12:34 pm: quoting 4.500% (apr 4.646%) priced with 0.765 points based on the same scenario above (30 year fixed). Pricing is only slightly more expensive for the same rate.
1:17 pm: quoting 4.500% (apr 4.677%) priced with 1.118 points based on the same scenario. This is 0.485% higher in points than where we started this morning, prior to the Fed’s announcement of beginning to pull back support of keeping mortgage rates low through their bond buying program.